This is what I found out and what I was told by the California EDD Claims
Adjuster Please let me know your feelings.
I told EDD about the funds, they told me just recently after I talked
to a claims adjuster, she told me that I never had to pay edd anything
due to the funds were considered a settlement and not earned income
that I physically worked at Nassco General Dynamics to get that money.
Per California employment code: California insurance code 1265.1-1265.9
Section 1265 of the Code states:
". . . payments to an individual under a plan or system
established by an employer which makes provisions for his employees
generally, or for a class or group of his employees, for the purpose
of supplementing unemployment compensation benefits shall not be
construed to be wages or compensation for personal services under this
division, and benefits payable under this division shall not be denied
or reduced because of the receipt of payments under such arrangements
I have been talking to Edd Ever since the settlement and they have
never gotten a call from Nassco or received a payment, this is what
the Claims adjuster told me, she also told me that I Would not owe EDD
any money because the money I got was not money earned, dues to the
code 1265 section. I have talked to the tax department the overpayment
department and the regular EDD people and nothing.
This just pisses me off more and make me more determined to find the truth.
So this means that I never had to pay them the 9, 478
What are wages?
All money, the value of meals and lodging, or other goods and services
provided to an employee as payment for personal services are “wages.”
Payment may be by private agreement, consent, or mandated by law.
The method of payment does not change the taxability of wages paid to
employees, no matter what terminology is used. Payments by the day, by
the hour, by “piece rate,” or any other measurement are wages, even if
the employee is a casual worker, day or contract laborer, part-time,
or temporary worker.
For more information, call our toll-free number (888) 745-3886 or
visit your local Employment Tax Office. You may also download our
Information Sheet: Wages (DE 231A).
Also found out that:
If back pay (wages) is awarded in a class action settlement, who is
responsible for reporting the wages and payroll taxes?
When a class action litigation involves wage and hour issues and the
settlement requires back pay to be made by a third-party
administrator, the employer of the workers (the defendant) is
responsible for reporting subject wages and paying Unemployment
Insurance, Employment Training Tax, and State Disability Insurance.
The third-party administrator who controls the payment of the back pay
is responsible for reporting Personal Income Tax (PIT) wages and
withholding PIT from the payments.
There are other complex issues associated with back pay. Call (888)
745-3886 for additional information.
That the union was to over sea the funds being payed back to edd if
their was funds to be paid back.
Does this sound correct or am I crazy.
Even though this was a back pay award, I did not earn the money for
physically working on the job. The woman kept on wondering why i had
to pay anything back, she told me I do not have to pay nothing back to
edd nor did my job.
Please let me know what you think.